Beer Marketer's Insights
Just as Molson Coors/Yuengling JV (The Yuengling Company) appointed distribs in IL for next yr's launch (see Jun 28 issue), it also made an interesting territory swap with DG Yuengling elsewhere. Recall, JV was initially set up for expansion states beyond DG Yuengling's existing 22-state footprint at the time. But on Friday, the JV officially announced that DG Yuengling is trading Arkansas, Louisiana and Mississippi mkts to the JV in exchange for Michigan, MC and The Yuengling Company confirmed with INSIGHTS. Transition will happen in Q4 2024, Wendy Yuengling shared with The Yuengling Company employees.
So far, Strive Nutrition has taken deliberate, targeted approach to buildout of its precision-fermented milk that's been focused mainly on broader NY metro. But that shouldn't be interpreted as representing any lack of ambition. For Denny Cohlmia, the longtime operator of KanPak copacker who founded Strive with his wife Janet, his aim is to create line of nutritious bevs and ancillary items that do their share to combat climate change by relying on precision fermentation to mimic the milk that comes from dairy cows. The strategic partnership announced last week with precision fermentation specialist Turtle Tree (BBI, Jun 26) came as another reflection of his plans to play in multiple categories, often but not always with Strive's precision-fermented Freemilk as a base. As we've earlier outlined, Strive Freemilk launch in 2022 was culmination of year-&-a-half development process, including a full year of shelf-life testing to insure stability (BBI, Dec 5 2022). "We started with whole milk because if we could make milk taste good, everything else is easy," Cohlmia told us last week over beers in NY, to which he shuttles frequently from his Wichita, Kan, base. KanPak was fully acquired by Golden State Foods back in 2016, tho Denny still operates a plant in China, where energetic entrepreneur also travels frequently, at age 72. Among things keeping him busy, he's in midst of raising $3 mil that he describes as "early-bird Series A."
Boise-based Gorilla Mind supplement co has won greatly expanded national presence at GNC chain, including addition of Bombsicle flavor in its 16-oz energy line. Assortment carried there now includes Gorilla Mode pre-workout powders (including exclusive Fruit Punch flavor), Nitric (stim-free) pre-workout (including exclusive Volcano Burst flavor), Gorilla Bars, Multivitamins, Smooth nootropic and Premium Protein Powder. The energy drinks go out at $3.49 per can, $34.99 per 12-pk. GNC merchandising vp Kevin Maloberti noted in statement that "Gorilla Mind has quickly become a go-to brand for our customers, and these additional innovations in the preworkout, protein, energy drinks and health and wellness categories allow us to address several unique usage occasions and need states for active and fitness-minded consumers" . . . Tho long focused online, Mud WTR coffee alternative has entered Target mass merch chain. Post by founder Shane Heath showed coffee shelf set in SoCal store that included pouches of its matcha and cacao entries, aside Chamberlain Coffee and just above Peet's . . . Looks like Mark Anthony Brands beer network in South Florida is runnin' with new Mas+ by Messi sports drink. Doug Wilcox, sr regl sales mgr for LRBs for Southeast region has posted array of pics of massive displays of the colorful 4-flavor line in Orlando and Miami/Pompano Beach area, crediting DSD partners Reyes Beverage Group and Gold Coast Beverage. Case stacks prominently display photo of soccer icon fronting drink. Cooler at 7-Eleven store shows it stocked at $2.69 alongside Electrolit at 2 for $5, Body Armor and its Flash IV extension at 2 for $4.50, and 7-E's own 7-Select Replenish at 2 for $3.50 . . . Mom's Organic Market chain has picked up Rishi Tea & Botanicals' line of canned Sparkling Botanicals.
Nearly 3 years after breaking ground, Flavorman has gone live with 28K-sq-ft expansion of its campus in Louisville, Ky, representing $8.5 mil investment. Dubbed the Scott Reed Production Building, after longtime warehouse mgr, it enhances blending, compounding and QC capabilities, supporting expansion of bulk flavor production and other services, co announced today.
Tho expansive, well-funded cos like Australia's Lyre's have gotten much of the attention in the burgeoning alc-alternative scene, a 15-year-old Belgian co called Univers Drinks lately has its sights set on US for expansion with uncommonly diverse array of NAs spanning wines, aperitifs, spirits, RTDs and most recently beers. It entered NA beer segment in Jan with versatile blond lager entry under Night Orient brand name.
Zico Coconut Water Restarts Marketing Engine with Osaka Signing Just Ahead of Wimbledon, Olympics
After arduous 3 years of rebuilding foundation after discontinuance by Coca-Cola, Zico Coconut Water finally is ready to hit the marketing button. And it's done so with a splash today with recruitment of Naomi Osaka as investor and frontwoman for brand, just ahead of Wimbledon, Summer Olympics and then NY Open. Announcement was orchestrated to People profile of 26-year-old star keyed to her rethinking of her health priorities after giving birth to her first child, daughter Shai, a year ago and taking time away from the tennis racket. "As an athlete, my health has always been a priority, even more now that I am returning to tennis after having my daughter," she told mag. "I am learning new ways to take care of myself both on and off the court, not only for myself, but for my family." Zico founder Mark Rampolla, whose GroundForce Capital reclaimed brand after KO deep-sixed it, cited Osaka's presence as reflection of brand's "commitment to product purity and excellence."
Michelob Ultra's sports-packed summer continues with release of a new tv spot named "Sweat" debuting July 4, "just in time for fans to raise a special-edition bottle of Ultra to Team USA" ahead of Olympics, co shared. In celebration of the US Olympic team, the Ultra bottles feature the Team USA logo, an American flag and the Olympic rings on the bottle neck label.
You wouldn't know it looking at scan data. But beer distribs reported their highest Jun ordering levels in 3 yrs, as well as a 4th straight month of yr-over-yr expansion (>50), per Beer Purchasers' Index from NBWA. Total beer's 58 reading marked its highest Jun index since 2021. Down slightly from 63 reading in May of this yr and 62 in Apr, tho up from 53 in Mar following BPI contraction to start 2024.
Near 60% of Beer Brands Down for the Yr, BWC Shows; Unpacking Churn; Flavor-Based Convergence
Slice and dice the data how you like, but imports and FMBs remain the key growth drivers for the US beer biz halfway thru 2024. The two segments contributed 53% of $1.3 bil in incremental growth tracked in NIQ off-premise data yr-to-date thru 6/15, monthly letter from Bump Williams Consulting shows. But all those gains were offset by $1.55 bil in declines from other segments. Just over half of that total decline driven by domestic premium & hard seltzer, according to this analysis.
Gallo Appointed Montucky to General Beverage in WI Statewide; Currently with MC/STZ Network
A little over one month since Gallo made its entry into beer thru the acquisition of Montucky Cold Snacks, INSIGHTS learned deets in one mkt where Gallo's lookin' to change distrib networks for Montucky. In WI, Gallo reportedly appointed one of its wine & spirits wholesalers for parts of the state, General Beverage, to distribute Montucky Cold Snacks statewide. Notably, Montucky is currently sold by other MC/STZ distribs across the state after picking up the brand back in 2020 from Breakthru of WI. Montucky grew to ~45K cases/yr statewide in WI, making it one of Montucky's larger mkts outside of core mountain region states. General and current network seemingly still gotta work out fair mkt value as Gallo's aiming for "immediate" transfer.